... well duh... I knew that. Just getting my dimensions out of whack (4x8 plywood for spacers on the uneven joists for drywall... 2x4 panels for drop ceiling... My thinking is only off by a factor of 2).

LOL, don't worry, we all get a case of "dimensional dysfunction" at times. As to reworking the plumbing, I'd say go with framing the soffits. You can use a soffit around the entire perimeter to make a sort of boxed trey ceiling effect. Again, if there's no real reason for regular access (shutoffs, etc.) I'd go with the drywall ceilings throughout. If the bath is a small area, just drop the whole ceiling.

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For a first time drywaller especially doing a ceiling I'd use the 4x8 sheets because they will be easier to work with. Also instead of using a hydraulic lift get a buddy and build your self a "T" which is nothing more than 2x4's screwed together in the shape of the letter T. Make the top piece just under 4ft or so and the entire "T" should be just taller than the ceiling. Lift the drywall into place then wedge the "T" at one end for stability and get to screwing it in. It'll save you some money, after you figure out the first one the rest go easy.

See your point Kev05211, but at the same time, you end up with more "butt" joints without a tapered edge. Those are much harder for a novice to finish. I'd opt for fewer joints, having to spend a bit more effort to hang the longer sheets. The end result is the finish....

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I don't believe there is a big cost differential between the two. The drywall will give you a more finished look and you'll be able to squeeze out a couple or more inches of headroom. On the other hand, a drop ceiling makes access to mechanicals much easier.